How to invest in Bitcoin decently

How to invest in Bitcoin decently

How to invest in Bitcoin decently. Blockchain and other cryptocurrencies

People keep asking me how to decently invest into the crypto-economy. What do I need to know? How not to lose money? How should I choose the right cryptocurrency for my portfolio, which will skyrocket in the future?

In this guide you will find an exhaustive list of answers to many of these questions. But very first, before providing you an explanation on how to invest, let me address the question: why should you even need to invest your hard-earned money? I’ll attempt to explain this as simply as possible.

Invest because it is growing.

Over the last twenty years with the invasion of the Internet, many people have earned amazing amounts of money on one elementary thing – the Network Effect. What the hell is that? In the 70-s there was an engineer Robert Metcalfe. He invented what we now call the Ethernet. In order to make a profit on this invention, he began selling network cards. At that time people didn’t understand why computers needed connect to the network. Robert realized that it was necessary to find a reassuring argument to prove that his network card was just the right panacea for all their illnesses. Robert said:

The network’s value is proportional to the square of the number of users in this network.

Well, you buy ten computers without a network card, their conditional costs are equal to Ten. However,with network cards the conditional costs of ten computers will increase to 45! This is Four.Five times more profitable! “Wow” — corporate workers said and then they began buying Robert’s network cards.

It turned out that Robert’s idea is fairly reasonable! You can use it to assess Telecom companies which have spinned out across the globe with redoubled force. The capitalisation of Telecom companies depends on the number of its users. The dependence is not a straight line but a quadratic. At the dawn of the social networks, venture capitalists quickly remembered the cherished formula and applied it to such things as Facebook, Twitter, Skype, etc. So the Metcalfe’s law was proven correct and gave us millions of Ethernet grids which evolved into what we now call the Internet.

Elementary truth — if the number of network users is steadily growing, the exponential growth of your investments is expected to grow with it. Thus, Facebook was worth more than $ three hundred billion. The formula is plain. Looking for a network which is growing steadily at the very beginning => put money => wait => profit! The question is — why Bitcoin? Because it’s the same network and it’s growing. Is growing quickly. Check for yourself:

2010–10 thousand users

2012–100 thousand users

2014–1 million users

2016–10 million users

Of course, these figures are very approximates, because there is no way to determine the exact number of users. The numbers listed above are my own assessment. To make it look more coaxing here is a graph of Blockchain.info wallets

Question: How long it will grow and when the growth will slow down?

Reaction: Blockchain technology refers to a class of technologies “No Way Back”. This is when Homo sapiens starts to use something and could not imagine how they lived without it. Here’s a graph in the case of TV, electro-stimulation and other technologies:

Growth will be carried out at the S curve until saturation occurs.

There are about Three.Five billion people who use the Internet, and about twenty billion connected devices or just bots. Considering that the Bitcoin network has properties that are not suggested to us by any Government or Corporation, we can assume that there is a high probability that the majority of connected people and machines will use this network. What are these properties?

No taxes

Free opening of accounts. They are simply calculated from your private key 🙂

Low transaction fees

Predictable and see-through clearing. You always know what is the status of any transaction

The transaction cannot be flipped back

Nobody asks the individual identification information

Nobody can write off your money

Nobody can block the account

No stupid thresholds

Suitable for all forms of property, not just currency.

A finish history of all transactions

Possibility of privacy and anonymity

The list of benefits can go on and on, but you get the idea. This is a kind of manna from heaven, which is better money in comparison with paper dollars. But most importantly:

It’s just the economic miracle of mathematics, cryptography and computer science.

Investment in the blockchain as the best investment chance since the begin of the Internet

Invest to not be cheated.

In the current economic circumstances the deception is carried out in three ways:

The part of inflation caused by the “printing press”. Witness movie “The Big Short”

Trivial racket.

It is not enough for Government to steal you money secretly. They openly steals from people by adding value to taxes. According to my estimates, at least half!

Banks may go bankrupt. They simply tell you “sorry, there is no your money”. The point is that any of your assets at any time may not be yours. The state does not assure the safety of your money. The Government requires you to keep your money in the banks, and your right of property in the public registers. People naively believing that there is no any alternative.

I believe, in the future, blockchain technology will become an immutable mathematical guarantor of the preservation of property and economic freedoms.

Foreseeing the collapse.

There are so many predictions of the collapse of the American financial system. Even billionaires already say this openly. Let’s say that it will not happen. But if it happens, we will not go back to the existing world order. Such events in retrospect are called Black Swans. Nobody thought that the 2nd World War will happen, that the Internet will show up, that Trump will become a President. But in retrospect, all these events are evident, and have a rational explanation. The collapse of the Fiat system would be the same. If the American economy collapses, the world will literally be in chaos. Our history in this regard is even more interesting because if the US economy collapses, other economies collapse even more. The mortgage crisis of two thousand eight proved this clearly. But it didn’t instruct anything.

What’s surprising here? How this bubble can burst if there is no alternative? For some reasons no one admits the idea that an alternative to the сurrent outdated system is already there. Which is superb! That suggests that a Black Swan is not such an unlikely event. In the case that a negative event has at least some probability, wise financiers are recommended to hedge risks. Let’s guess , what’s the alternative?

Look in The Future

There is another argument in favor of the Blockchain: robots and artificial intelligence. The reality is that we don’t know exactly when computer algorithms will be able to solve all the problems that we can, including creativity.

Today is 2017. The computing power of the device which cost $1000 approximately equal the computational abilities of the mouse. In accordance with Moore’s law in two thousand twenty five (and perhaps earlier, e.g., in 2022) the cost of computing by humans biological brain will be compared with the cost of computing by computers.

Let me give you some real live examples from different areas:

The algorithm that broke one of the strongest players of Go is available on Github and it is called “Tensor Flow”. Any school student can click on the “Fork” button and make everything that comes into his mind. This accessibility of indeed clever technologies will inevitably lead to the emergence of a fresh generation of brainy devices. Autonomous robots will be able to earn money and consequently make economic decisions. And as soon as the very first striking example occurs — the Homo sapiens may get jumpy. His job may be under threat.

There are more Bots than humans. This amount will increase and Bots will become smarter. Thus, the risk of devaluation of your (and my) intelligence is real. And the longer you deny it, the quicker your brain will depreciate in value. The point is that the blockchain is convenient for a robot economy . It is understandable, it is reliable, and it is effortless to integrate. The Blockchain for the Internet of Things is a fresh megatrend. It is visible that without the blockchain — robot’s economy simply unlikely. The solution is right here:

Investments in the blockchain as a hedge against the depreciation of your own intellect.

In addition to the von Neumann architecture, there will be quantum computers in the future. The Moores law for quantum computers will work in the square.

So, you have some incentive ideas in your head and you already want to buy Bitcoins. Your blood starts to boil. The brain anticipates an incredible profit. All the free energy is concentrated on the sources of investment.

Peaceful down! Turn ON your Brain

The blockchain is a indeed cool technology and it is growing rapidly. But there is no assure that you will be able to make profit. I will list some necessary conditions that must be followed to increase the probability of a profitable outcome.

Before invest-improve your technical competence.

A mandatory condition for safe investments in the crypto-economy is a basic computer literacy. If you don’t know how computers works, then think twice before putting your wealth. Then the question arises: How do you I know if I have this basic computer literacy? These bullet points will help you understand a little bit more about it:

You have the same password for almost all services.

Length of your passwords is less than twenty characters or it is copied phrase from the book.

Do you use anti-virus software and believe that it will protect you.

You don’t backup your data.

You have no idea about what is data synchronization and why it is needed.

You don’t know what is “trust a website”, what is “operating system and hardware security”.

You can’t generate a mini-lecture for at least ten minutes when you ask the question: what actually happens when a browser is driven google.com and then pressed Inject?

If you answered “Yes” to even one question — your computer literacy want to be better, and you need to take this into account when investing in the crypt-economy. Otherwise, you have a high probability that something will go wrong.

Check my tutorial to know how to store Bitcoins and altcoins in a secured way.

Define strategy

You have already realized that there is no freebies, and risks, in fact, are more than you thought! You need some time to determine how much to put down for investment. General recommendation: from 1% to 10% of an available financial assets you presently have. If you have confidence in your own computer literacy, then the percentage can be enlargened up to 30% and even 50%.

It is very significant to embark from amount of your financial assets. An suitable financial assets are currency, stocks, bonds, shares. Property, cars and other things that can be touched, are not included here. Albeit, I’ve heard a story about one dude who sold his apartment and bought Ether on all the money. Heroes must be known in person, so let me know if you read this!

So, if financial assets are greater than $100k — you’re fortunate:). Buy cryptocurrency in the amount of from 1% to 10%, depending of your risk appetite.

If your financial assets are in a range of $10k-$100k — you have something to lose. You are neat, consistent and purposeful. Permit yourself a little risk and roll up to 3%-20%. Your well-being is not significantly affected in a case of losses, but it can teleport you into the category above sooner than you would want to leave your current work.

If financial assets you have are up to $10K — you are still ahead. The amount is already nice, but it is not enough to feed itself. When there is a stable source of income, commence from 5%, and when you will be certain — raise the rate up to 40%. Think about your strategy: 5% for retirement. When you got paid — put 5% on the blockchain. If you maintain schedule within 1–2 years you will be pleased with your investments.

If you do not have anything, then best suited strategy is “all-in”, because you have nothing to lose. With such financial discipline — hardly something will help you! So is there any chance that something will switches in your life .

Good! Bitcoins are for you! Governments, banks and even your parents think that you can’t have something for possessions, without their permission. Prove to them that this is not true. If you are reading this article, very likely your computer literacy is much better than most of the people around you. So don’t believe them. They are stupid. By the time you finish school, banks may vanish altogether, Governments may become autonomous code, your parents may lose their job in connection with the invasion of artificial intelligence, and your kettle might be richer off than your entire family. But if you’ll have a few bitcoins and ems of Ether, your coevals will look at you differently. Women will love and parents will be proud. Look at Vitalik Buterin. His very first bitcoins appeared when he was sixteen years old. It was interesting. He began to write and investigate. Then he didn’t go to University, but created Ethereum. Now, professors of the world call him Mr. Vitalik Buterin. If you will embark to accumulate anything from 6, 8, Ten, twelve years you will have a good future.

Prepare to wait a long time.

If you’re not ready to freeze your money less than for three years — close the tab and budge on. There is nothing for you. Blockchain market is in the embryonic stage. It may be rocking back and forward. The clear strategy is Buy & Hold. Bought and keep. I recommend to plan it as a long-term investment with some elementary strategy of fixing. For example, detecting 10% each time when the net asset valuation enhanced five times from the previous commit. Well, it’s ordinary! But this strategy will only work if you define the investment horizon in a radius of 3–10 years.

Find entry point

Here’s what is thing about. There are all sorts of technology is growing unevenly. The guys from Gartner explained it very simply:

How to invest in Bitcoin decently

How to invest in Bitcoin decently. Blockchain and other cryptocurrencies

People keep asking me how to decently invest into the crypto-economy. What do I need to know? How not to lose money? How should I choose the right cryptocurrency for my portfolio, which will skyrocket in the future?

In this guide you will find an exhaustive list of answers to many of these questions. But very first, before providing you an explanation on how to invest, let me address the question: why should you even need to invest your hard-earned money? I’ll attempt to explain this as simply as possible.

Invest because it is growing.

Over the last twenty years with the invasion of the Internet, many people have earned amazing amounts of money on one elementary thing – the Network Effect. What the hell is that? In the 70-s there was an engineer Robert Metcalfe. He invented what we now call the Ethernet. In order to make a profit on this invention, he began selling network cards. At that time people didn’t understand why computers needed connect to the network. Robert realized that it was necessary to find a reassuring argument to prove that his network card was just the right panacea for all their illnesses. Robert said:

The network’s value is proportional to the square of the number of users in this network.

Well, you buy ten computers without a network card, their conditional costs are equal to Ten. However,with network cards the conditional costs of ten computers will increase to 45! This is Four.Five times more profitable! “Wow” — corporate workers said and then they began buying Robert’s network cards.

It turned out that Robert’s idea is fairly reasonable! You can use it to assess Telecom companies which have flipped out across the globe with redoubled force. The capitalisation of Telecom companies depends on the number of its users. The dependence is not a straight line but a quadratic. At the dawn of the social networks, venture capitalists quickly remembered the cherished formula and applied it to such things as Facebook, Twitter, Skype, etc. So the Metcalfe’s law was proven correct and gave us millions of Ethernet grids which evolved into what we now call the Internet.

Plain truth — if the number of network users is steadily growing, the exponential growth of your investments is expected to grow with it. Thus, Facebook was worth more than $ three hundred billion. The formula is plain. Looking for a network which is growing steadily at the very beginning => put money => wait => profit! The question is — why Bitcoin? Because it’s the same network and it’s growing. Is growing quickly. Check for yourself:

2010–10 thousand users

2012–100 thousand users

2014–1 million users

2016–10 million users

Of course, these figures are very approximates, because there is no way to determine the exact number of users. The numbers listed above are my own assessment. To make it look more wooing here is a graph of Blockchain.info wallets

Question: How long it will grow and when the growth will slow down?

Response: Blockchain technology refers to a class of technologies “No Way Back”. This is when Homo sapiens starts to use something and could not imagine how they lived without it. Here’s a graph in the case of TV, electrical play and other technologies:

Growth will be carried out at the S curve until saturation occurs.

There are about Trio.Five billion people who use the Internet, and about twenty billion connected devices or just bots. Considering that the Bitcoin network has properties that are not suggested to us by any Government or Corporation, we can assume that there is a high probability that the majority of connected people and machines will use this network. What are these properties?

No taxes

Free opening of accounts. They are simply calculated from your private key 🙂

Low transaction fees

Predictable and translucent clearing. You always know what is the status of any transaction

The transaction cannot be spinned back

Nobody asks the individual identification information

Nobody can write off your money

Nobody can block the account

No stupid thresholds

Suitable for all forms of property, not just currency.

A accomplish history of all transactions

Possibility of privacy and anonymity

The list of benefits can go on and on, but you get the idea. This is a kind of manna from heaven, which is better money in comparison with paper dollars. But most importantly:

It’s just the economic miracle of mathematics, cryptography and computer science.

Investment in the blockchain as the best investment chance since the begin of the Internet

Invest to not be cheated.

In the current economic circumstances the deception is carried out in three ways:

The part of inflation caused by the “printing press”. Observe movie “The Big Short”

Trivial racket.

It is not enough for Government to steal you money secretly. They openly steals from people by adding value to taxes. According to my estimates, at least half!

Banks may go bankrupt. They simply tell you “sorry, there is no your money”. The point is that any of your assets at any time may not be yours. The state does not ensure the safety of your money. The Government requires you to keep your money in the banks, and your right of property in the public registers. People naively believing that there is no any alternative.

I believe, in the future, blockchain technology will become an immutable mathematical guarantor of the preservation of property and economic freedoms.

Foreseeing the collapse.

There are so many predictions of the collapse of the American financial system. Even billionaires already say this openly. Let’s say that it will not happen. But if it happens, we will not go back to the existing world order. Such events in retrospect are called Black Swans. Nobody thought that the 2nd World War will happen, that the Internet will show up, that Trump will become a President. But in retrospect, all these events are evident, and have a rational explanation. The collapse of the Fiat system would be the same. If the American economy collapses, the world will literally be in chaos. Our history in this regard is even more interesting because if the US economy collapses, other economies collapse even more. The mortgage crisis of two thousand eight proved this clearly. But it didn’t train anything.

What’s surprising here? How this bubble can burst if there is no alternative? For some reasons no one admits the idea that an alternative to the сurrent outdated system is already there. Which is superb! That suggests that a Black Swan is not such an unlikely event. In the case that a negative event has at least some probability, clever financiers are recommended to hedge risks. Let’s guess , what’s the alternative?

Look in The Future

There is another argument in favor of the Blockchain: robots and artificial intelligence. The reality is that we don’t know exactly when computer algorithms will be able to solve all the problems that we can, including creativity.

Today is 2017. The computing power of the device which cost $1000 approximately equal the computational abilities of the mouse. In accordance with Moore’s law in two thousand twenty five (and perhaps earlier, e.g., in 2022) the cost of computing by humans biological brain will be compared with the cost of computing by computers.

Let me give you some real live examples from different areas:

The algorithm that broke one of the strongest players of Go is available on Github and it is called “Tensor Flow”. Any school student can click on the “Fork” button and make everything that comes into his mind. This accessibility of indeed brainy technologies will inevitably lead to the emergence of a fresh generation of clever devices. Autonomous robots will be able to earn money and consequently make economic decisions. And as soon as the very first striking example occurs — the Homo sapiens may get jumpy. His job may be under threat.

There are more Bots than humans. This amount will increase and Bots will become smarter. Thus, the risk of devaluation of your (and my) intelligence is real. And the longer you deny it, the swifter your brain will depreciate in value. The point is that the blockchain is convenient for a robot economy . It is understandable, it is reliable, and it is effortless to integrate. The Blockchain for the Internet of Things is a fresh megatrend. It is visible that without the blockchain — robot’s economy simply unlikely. The solution is right here:

Investments in the blockchain as a hedge against the depreciation of your own intellect.

In addition to the von Neumann architecture, there will be quantum computers in the future. The Moores law for quantum computers will work in the square.

So, you have some incentive ideas in your head and you already want to buy Bitcoins. Your blood starts to boil. The brain anticipates an incredible profit. All the free energy is concentrated on the sources of investment.

Silent down! Turn ON your Brain

The blockchain is a truly cool technology and it is growing rapidly. But there is no ensure that you will be able to make profit. I will list some necessary conditions that must be followed to increase the probability of a profitable outcome.

Before invest-improve your technical competence.

A mandatory condition for safe investments in the crypto-economy is a basic computer literacy. If you don’t know how computers works, then think twice before putting your wealth. Then the question arises: How do you I know if I have this basic computer literacy? These bullet points will help you understand a little bit more about it:

You have the same password for almost all services.

Length of your passwords is less than twenty characters or it is copied phrase from the book.

Do you use anti-virus software and believe that it will protect you.

You don’t backup your data.

You have no idea about what is data synchronization and why it is needed.

You don’t know what is “trust a website”, what is “operating system and hardware security”.

You can’t generate a mini-lecture for at least ten minutes when you ask the question: what actually happens when a browser is driven google.com and then pressed Inject?

If you answered “Yes” to even one question — your computer literacy want to be better, and you need to take this into account when investing in the crypt-economy. Otherwise, you have a high probability that something will go wrong.

Check my tutorial to know how to store Bitcoins and altcoins in a secured way.

Define strategy

You have already realized that there is no freebies, and risks, in fact, are more than you thought! You need some time to determine how much to put down for investment. General recommendation: from 1% to 10% of an available financial assets you presently have. If you have confidence in your own computer literacy, then the percentage can be enlargened up to 30% and even 50%.

It is very significant to commence from amount of your financial assets. An adequate financial assets are currency, stocks, bonds, shares. Property, cars and other things that can be touched, are not included here. Albeit, I’ve heard a story about one dude who sold his apartment and bought Ether on all the money. Heroes must be known in person, so let me know if you read this!

So, if financial assets are greater than $100k — you’re fortunate:). Buy cryptocurrency in the amount of from 1% to 10%, depending of your risk appetite.

If your financial assets are in a range of $10k-$100k — you have something to lose. You are neat, consistent and purposeful. Permit yourself a little risk and roll up to 3%-20%. Your well-being is not significantly affected in a case of losses, but it can teleport you into the category above sooner than you would want to leave your current work.

If financial assets you have are up to $10K — you are still ahead. The amount is already nice, but it is not enough to feed itself. When there is a stable source of income, begin from 5%, and when you will be certain — raise the rate up to 40%. Think about your strategy: 5% for retirement. When you got paid — put 5% on the blockchain. If you maintain schedule within 1–2 years you will be pleased with your investments.

If you do not have anything, then best suited strategy is “all-in”, because you have nothing to lose. With such financial discipline — hardly something will help you! So is there any chance that something will switches in your life .

Superb! Bitcoins are for you! Governments, banks and even your parents think that you can’t have something for possessions, without their permission. Prove to them that this is not true. If you are reading this article, very likely your computer literacy is much better than most of the people around you. So don’t believe them. They are stupid. By the time you finish school, banks may vanish altogether, Governments may become autonomous code, your parents may lose their job in connection with the invasion of artificial intelligence, and your kettle might be richer off than your entire family. But if you’ll have a few bitcoins and ems of Ether, your coevals will look at you differently. Women will love and parents will be proud. Look at Vitalik Buterin. His very first bitcoins appeared when he was sixteen years old. It was interesting. He began to write and probe. Then he didn’t go to University, but created Ethereum. Now, professors of the world call him Mr. Vitalik Buterin. If you will commence to accumulate anything from 6, 8, Ten, twelve years you will have a good future.

Prepare to wait a long time.

If you’re not ready to freeze your money less than for three years — close the tab and budge on. There is nothing for you. Blockchain market is in the embryonic stage. It may be rocking back and forward. The clear strategy is Buy & Hold. Bought and keep. I recommend to plan it as a long-term investment with some plain strategy of fixing. For example, detecting 10% each time when the net asset valuation enhanced five times from the previous commit. Well, it’s elementary! But this strategy will only work if you define the investment horizon in a radius of 3–10 years.

Find entry point

Here’s what is thing about. There are all sorts of technology is growing unevenly. The guys from Gartner explained it very simply:

How to invest in Bitcoin decently

How to invest in Bitcoin decently. Blockchain and other cryptocurrencies

People keep asking me how to decently invest into the crypto-economy. What do I need to know? How not to lose money? How should I choose the right cryptocurrency for my portfolio, which will skyrocket in the future?

In this guide you will find an exhaustive list of answers to many of these questions. But very first, before providing you an explanation on how to invest, let me address the question: why should you even need to invest your hard-earned money? I’ll attempt to explain this as simply as possible.

Invest because it is growing.

Over the last twenty years with the invasion of the Internet, many people have earned amazing amounts of money on one plain thing – the Network Effect. What the hell is that? In the 70-s there was an engineer Robert Metcalfe. He invented what we now call the Ethernet. In order to make a profit on this invention, he began selling network cards. At that time people didn’t understand why computers needed connect to the network. Robert realized that it was necessary to find a reassuring argument to prove that his network card was just the right panacea for all their illnesses. Robert said:

The network’s value is proportional to the square of the number of users in this network.

Well, you buy ten computers without a network card, their conditional costs are equal to Ten. However,with network cards the conditional costs of ten computers will increase to 45! This is Four.Five times more profitable! “Wow” — corporate workers said and then they began buying Robert’s network cards.

It turned out that Robert’s idea is fairly reasonable! You can use it to assess Telecom companies which have spinned out across the globe with redoubled force. The capitalisation of Telecom companies depends on the number of its users. The dependence is not a straight line but a quadratic. At the dawn of the social networks, venture capitalists quickly remembered the cherished formula and applied it to such things as Facebook, Twitter, Skype, etc. So the Metcalfe’s law was proven correct and gave us millions of Ethernet grids which evolved into what we now call the Internet.

Elementary truth — if the number of network users is steadily growing, the exponential growth of your investments is expected to grow with it. Thus, Facebook was worth more than $ three hundred billion. The formula is plain. Looking for a network which is growing steadily at the very beginning => put money => wait => profit! The question is — why Bitcoin? Because it’s the same network and it’s growing. Is growing quickly. Check for yourself:

2010–10 thousand users

2012–100 thousand users

2014–1 million users

2016–10 million users

Of course, these figures are very approximates, because there is no way to determine the exact number of users. The numbers listed above are my own assessment. To make it look more wooing here is a graph of Blockchain.info wallets

Question: How long it will grow and when the growth will slow down?

Response: Blockchain technology refers to a class of technologies “No Way Back”. This is when Homo sapiens starts to use something and could not imagine how they lived without it. Here’s a graph in the case of TV, violet wand and other technologies:

Growth will be carried out at the S curve until saturation occurs.

There are about Trio.Five billion people who use the Internet, and about twenty billion connected devices or just bots. Considering that the Bitcoin network has properties that are not suggested to us by any Government or Corporation, we can assume that there is a high probability that the majority of connected people and machines will use this network. What are these properties?

No taxes

Free opening of accounts. They are simply calculated from your private key 🙂

Low transaction fees

Predictable and semitransparent clearing. You always know what is the status of any transaction

The transaction cannot be flipped back

Nobody asks the individual identification information

Nobody can write off your money

Nobody can block the account

No stupid thresholds

Suitable for all forms of property, not just currency.

A accomplish history of all transactions

Possibility of privacy and anonymity

The list of benefits can go on and on, but you get the idea. This is a kind of manna from heaven, which is better money in comparison with paper dollars. But most importantly:

It’s just the economic miracle of mathematics, cryptography and computer science.

Investment in the blockchain as the best investment chance since the begin of the Internet

Invest to not be cheated.

In the current economic circumstances the deception is carried out in three ways:

The part of inflation caused by the “printing press”. See movie “The Big Short”

Trivial racket.

It is not enough for Government to steal you money secretly. They openly steals from people by adding value to taxes. According to my estimates, at least half!

Banks may go bankrupt. They simply tell you “sorry, there is no your money”. The point is that any of your assets at any time may not be yours. The state does not assure the safety of your money. The Government requires you to keep your money in the banks, and your right of property in the public registers. People naively believing that there is no any alternative.

I believe, in the future, blockchain technology will become an immutable mathematical guarantor of the preservation of property and economic freedoms.

Foreseeing the collapse.

There are so many predictions of the collapse of the American financial system. Even billionaires already say this openly. Let’s say that it will not happen. But if it happens, we will not go back to the existing world order. Such events in retrospect are called Black Swans. Nobody thought that the 2nd World War will happen, that the Internet will show up, that Trump will become a President. But in retrospect, all these events are demonstrable, and have a rational explanation. The collapse of the Fiat system would be the same. If the American economy collapses, the world will literally be in chaos. Our history in this regard is even more interesting because if the US economy collapses, other economies collapse even more. The mortgage crisis of two thousand eight proved this clearly. But it didn’t instruct anything.

What’s surprising here? How this bubble can burst if there is no alternative? For some reasons no one admits the idea that an alternative to the сurrent outdated system is already there. Which is excellent! That suggests that a Black Swan is not such an unlikely event. In the case that a negative event has at least some probability, wise financiers are recommended to hedge risks. Let’s guess , what’s the alternative?

Look in The Future

There is another argument in favor of the Blockchain: robots and artificial intelligence. The reality is that we don’t know exactly when computer algorithms will be able to solve all the problems that we can, including creativity.

Today is 2017. The computing power of the device which cost $1000 approximately equal the computational abilities of the mouse. In accordance with Moore’s law in two thousand twenty five (and perhaps earlier, e.g., in 2022) the cost of computing by humans biological brain will be compared with the cost of computing by computers.

Let me give you some real live examples from different areas:

The algorithm that broke one of the strongest players of Go is available on Github and it is called “Tensor Flow”. Any school student can click on the “Fork” button and make everything that comes into his mind. This accessibility of indeed clever technologies will inevitably lead to the emergence of a fresh generation of brainy devices. Autonomous robots will be able to earn money and consequently make economic decisions. And as soon as the very first striking example occurs — the Homo sapiens may get jumpy. His job may be under threat.

There are more Bots than humans. This amount will increase and Bots will become smarter. Thus, the risk of devaluation of your (and my) intelligence is real. And the longer you deny it, the quicker your brain will depreciate in value. The point is that the blockchain is convenient for a robot economy . It is understandable, it is reliable, and it is effortless to integrate. The Blockchain for the Internet of Things is a fresh megatrend. It is evident that without the blockchain — robot’s economy simply unlikely. The solution is right here:

Investments in the blockchain as a hedge against the depreciation of your own intellect.

In addition to the von Neumann architecture, there will be quantum computers in the future. The Moores law for quantum computers will work in the square.

So, you have some incentive ideas in your head and you already want to buy Bitcoins. Your blood starts to boil. The brain anticipates an incredible profit. All the free energy is concentrated on the sources of investment.

Silent down! Turn ON your Brain

The blockchain is a truly cool technology and it is growing rapidly. But there is no ensure that you will be able to make profit. I will list some necessary conditions that must be followed to increase the probability of a profitable outcome.

Before invest-improve your technical competence.

A mandatory condition for safe investments in the crypto-economy is a basic computer literacy. If you don’t know how computers works, then think twice before putting your wealth. Then the question arises: How do you I know if I have this basic computer literacy? These bullet points will help you understand a little bit more about it:

You have the same password for almost all services.

Length of your passwords is less than twenty characters or it is copied phrase from the book.

Do you use anti-virus software and believe that it will protect you.

You don’t backup your data.

You have no idea about what is data synchronization and why it is needed.

You don’t know what is “trust a website”, what is “operating system and hardware security”.

You can’t generate a mini-lecture for at least ten minutes when you ask the question: what actually happens when a browser is driven google.com and then pressed Come in?

If you answered “Yes” to even one question — your computer literacy want to be better, and you need to take this into account when investing in the crypt-economy. Otherwise, you have a high probability that something will go wrong.

Check my tutorial to know how to store Bitcoins and altcoins in a secured way.

Define strategy

You have already realized that there is no freebies, and risks, in fact, are more than you thought! You need some time to determine how much to put down for investment. General recommendation: from 1% to 10% of an available financial assets you presently have. If you have confidence in your own computer literacy, then the percentage can be enlargened up to 30% and even 50%.

It is very significant to embark from amount of your financial assets. An adequate financial assets are currency, stocks, bonds, shares. Property, cars and other things that can be touched, are not included here. Albeit, I’ve heard a story about one stud who sold his apartment and bought Ether on all the money. Heroes must be known in person, so let me know if you read this!

So, if financial assets are greater than $100k — you’re fortunate:). Buy cryptocurrency in the amount of from 1% to 10%, depending of your risk appetite.

If your financial assets are in a range of $10k-$100k — you have something to lose. You are neat, consistent and purposeful. Permit yourself a little risk and roll up to 3%-20%. Your well-being is not significantly affected in a case of losses, but it can teleport you into the category above sooner than you would want to leave your current work.

If financial assets you have are up to $10K — you are still ahead. The amount is already nice, but it is not enough to feed itself. When there is a stable source of income, commence from 5%, and when you will be certain — raise the rate up to 40%. Think about your strategy: 5% for retirement. When you got paid — put 5% on the blockchain. If you maintain schedule within 1–2 years you will be pleased with your investments.

If you do not have anything, then best suited strategy is “all-in”, because you have nothing to lose. With such financial discipline — hardly something will help you! So is there any chance that something will switches in your life .

Fine! Bitcoins are for you! Governments, banks and even your parents think that you can’t have something for possessions, without their permission. Prove to them that this is not true. If you are reading this article, most likely your computer literacy is much better than most of the people around you. So don’t believe them. They are stupid. By the time you finish school, banks may vanish altogether, Governments may become autonomous code, your parents may lose their job in connection with the invasion of artificial intelligence, and your kettle might be richer off than your entire family. But if you’ll have a few bitcoins and ems of Ether, your coevals will look at you differently. Ladies will love and parents will be proud. Look at Vitalik Buterin. His very first bitcoins appeared when he was sixteen years old. It was interesting. He began to write and investigate. Then he didn’t go to University, but created Ethereum. Now, professors of the world call him Mr. Vitalik Buterin. If you will begin to accumulate anything from 6, 8, Ten, twelve years you will have a good future.

Prepare to wait a long time.

If you’re not ready to freeze your money less than for three years — close the tab and budge on. There is nothing for you. Blockchain market is in the embryonic stage. It may be rocking back and forward. The clear strategy is Buy & Hold. Bought and keep. I recommend to plan it as a long-term investment with some plain strategy of fixing. For example, detecting 10% each time when the net asset valuation enhanced five times from the previous commit. Well, it’s ordinary! But this strategy will only work if you define the investment horizon in a radius of 3–10 years.

Find entry point

Here’s what is thing about. There are all sorts of technology is growing unevenly. The guys from Gartner explained it very simply:

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